Balanced Score Card
Strategy is all About Implementation: The Arcus approach is all about Implementation. A Balanced Scorecard can only have value if it is linked to the organizations Strategic Direction.
The balanced scorecard is a strategic management system used to drive performance and accountability throughout the organization. The scorecard balances traditional performance measures with more forward-looking indicators in four key dimensions: FInancial, Customer, Internal Business Operations and Learning and Growth. |
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Concepts and strategy:
Our approach is to first use our collective experience to come up with 15-20 provocative concepts for a strategy. These are based on a series of questions that probe various topics and drivers of change. The outcome of the process is used to build several strategic maps to define and strengthen each hypothesis for a strategy.
Arcus Strategic Planning Processes
Arcus Strategy Map
Balanced Score Card
Services:
In order for a scorecard to be “balanced”, the Financial Measures should make up about 22% of the Scorecard (as should the Customer Perspective and the Learning & Growth Perspective, with the final 34% allocated to Internal Processes measures). Further an independent study of Best practices researched 22 organizations that had “successfully implemented the Balanced Scorecard” and found a breakdown as follows:
• Financial 20%
• Customer 24%
• Internal Process 37%
• Learning and Growth 18%
Fundamentally this suggests that Balanced Scorecards
reflect the understanding that Internal Processes drive the financials and that 80% of any scorecard must be non financial.
The Balanced Scorecard is not “another measurement system”. When an organization harvests all of its Key Performance Indicators, both the existing and the desired, and “dumps” them into a new framework that presents “perspectives” beyond the merely financial view.
Performance drivers
Although the effort to identify a more complete set of performance
drivers beyond the traditional financial architecture is to be applauded, we need to be sure
that this is not merely a process of taking another “metrics inventory” or an accumulation
of the measurable targets articulated in the annual salary plan and representing them in a
new model. Often this so called new balanced measurement model is no more that a
representation of the voices of the organization’s critical constituents usually identified as
customers, shareholders and employees.
A Solution: Arcus uses its unique
Methodology to address the above problems.
In an effort to significantly increase the performance of an organization, Arcus focuses on
the Balanced Scorecard as a Strategic Navigational Chart (SNC) from two unique
perspectives:
1. The Arcus Strategic Scorecard is a navigational tool (not only measuring
after the fact financials) designed to manage the business from the future usinglead performance indicators embedded in the Internal Processes of the business.
2. The ASC recognizes and deploys the scorecard as a
strategic business plan that allows for action and implementation.
| Ideas and Insight |
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STRATEGY: The future of value- Ambidextrous Leadership
No one can avoid the challenges of an info-based global economy, the
need for organic growth or the innovation imperative. Today’s leading
CEOs are going down a road everyone in business will have to
travel. Read more  |
Lean Six Sigma Certification
Industry: Healthcare, Service & Manufacturing
Lean Six Sigma Certification programs including Lean Six Sigma Greenbelt, Lean Green Belt, and Lean Black Belt.
Lean Six Sigma Certification
An end-to-end offering focused, Enterprise Transformation. Multi-layered value streams are selected for the transformation. All work flows in these streams are analyzed to identify value and waste. An Enterprise Implementation Strategy is developed to identify ways to systematically eliminate waste.
Lean Six Sigma Certification
Level: New To Lean
Industry: Healthcare, Service & Manufacturing
An end-to-end system wide, 4-6 month Value Stream Transformation Pilot. 2-4 activity streams are selected for the transformation. All activities in these streams are analyzed to determine value and waste. An Implementation Plan will be developed that details how the waste will be systematically eliminated.
Lean Six Sigma Certification
Level: New To Lean
Industry: Healthcare, Service & Manufacturing
An end-to-end system wide, 4-6 month Value Stream Transformation Pilot. 1-2 activity streams are selected for the transformation. An Implementation Plan will be developed detailing the systematic elimination of the waste.
Find out your company's performance against a benchmark of 500 of North America's most successful companies. Contact us for an evaluation of your corporate strategy and an ROI audit.
A strategy will be most successful when core competencies and aligned activities enable the company to offer a value proposition that is better than competitors.